I indicated in our last monthly update that we’re seeing around 75% of our enterprise clients freeze all hiring (including usage of the Braintrust platform). In the last month we’ve only seen the slowdown get worse. Earlier this year we had ramped up hiring in anticipation of more growth, not less, so this week we decided to reverse those bets in order to preserve cash and keep the business financially sustainable. That reversal involved a decision to lay off 40% of the Freelance Labs staff (~28 FTEs), institute a 10% pay cut across the board, and pause all paid marketing initiatives. We will remain focused on automation & GSV efficiency until demand returns, at which point we’ll expand back to hyper-growth mode.
These cuts, while painful in the short term, ensure that we will survive this downturn and will never need more outside capital as the balance sheet is strong. This is not a change in strategy or a reflection of our business model viability. We’ll continue to invest in self-serve on the product side (efficient client funnel), the Professional Network for low-CAC talent acquisition and sophisticated, AI-based automation in order to keep OpEx very low once the demand comes back to the network.
Some good news in the last month:
Other things we’re doing:
Thank you to everyone who has reached out and offered to help. We are grateful as always for the support of this community.
Any questions, comments, concerns, please don’t hesitate to reach out.
All the best,
Adam
Join Braintrust: https://app.usebraintrust.com/r/adam3/
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Podcast: www.adamjacksonshow.xyz